Min 06/27/1996 245
Wichita Falls, Texas
Multi-Purpose Events Center
June 27, 1996
The City Council of the City of Wichita Falls, Texas, met
in special session on the above date in the Exhibit Hall, Room 5
of the Multi Purpose Events Center at 8 : 00 o' clock a.m. , with
the following members present :
Kay Yeager - Mayor
Don Johnston - Councilors
Dan Shine -
Angus Thompson -
Bill Daniel -
J. W. Martin -
Harold Hawkins -
James Berzina - City Manager
Gregory Humbach - City Attorney
Lydia Torres - City Clerk
Mayor Yeager called the meeting to order.
Item
RESOLUTION NO, 84-96
RESOLUTION DIRECTING PUBLICATION OF NOTICE OF
INTENTION TO ISSUE CITY OF WICHITA FALLS, TEXAS WATER
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE BONDS,
SERIES 1996
Moved by Councilor Hawkins that Resolution No. 84-96 be
passed.
Motion seconded by Councilor Johnston.
Mr. Murphy Davis informed that application was made to the
Texas Water Development Board for health and financing and
approval for financing was received. We are being forced to do
the financing to meet standards, and we are going to be able to
get it done at a rate considerably less expensive than if we
were to go directly to the market to sell these securities . In
order to do that, we have to pass a bond order authorizing the
issuance of these securities . The first installment will be
$11, 420 , 000 . To finance that portion of the debt will require a
rate increase to accomplish the financing. Our intent of notice
to sell the securities must be published two weeks prior to the
adoption of the ordinance . The resolution you are considering
this morning will fulfill that requirement .
Mr. Fred Werner, Finance Director, informed that we have a
schedule of $29 million that is going to be drawn down over a
three year period. $11 .4 million is going to be executed now,
and he is currently working on $2 . 9 million which will be drawn
down in early 1997 . As the engineering development and
construction cost goes forward we will have to do this again at
246
Item 3 con 'd.
a later date . The rate increase was projected back several
years ago at 4 o each year, thatis an average between the water
and sewer. He suggested that Council keep this in mind as City
Manager presents the budget to cover these bond payments . The
rates will probably be increased during the new budget in
October.
Mr. Davis stated that we have certain bond mandates in our
bond indenture which says that we must set the rate at a level
that will generate X number of dollars to pay off the bonds'
principle and interest . The subordinate lien bonds is 1 . 1 and
the prior lien bonds is 1 . 125 . These bonds will be subordinate
lien bonds . The 1 . 1% is what is required.
Motion carried by the following vote .
Ayes : Mayor Yeager, Councilors Johnston, Shine, Thompson,
Daniel, Martin, and Hawkins
Nays : None
City Council adjourned at 8 : 25 a.m.
PASSED AND APPROVED this ' day of 1996 .
M A Y O R
ATTEST:
n
City Clerk